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Stock market news live updates: Stocks pare declines while US-China tensions mount – Yahoo Canada Finance

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Stocks were mixed Friday, paring earlier losses as ongoing signs of the economic damage from the coronavirus pandemic compounded with fears of rising U.S.-China tensions. A slew of quarterly corporate earnings results came in mixed.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Concerns that relations with China could become increasingly strained flared up Thursday, with U.S. senators introducing a bipartisan bill that would sanction Chinese officials and organizations who enforce newly introduced security measures in Hong Kong. This came a day after the Senate passed a bill that would make it more difficult for Chinese companies to list on U.S. stock exchanges. All three major indices ended the regular session lower.” data-reactid=”17″>Concerns that relations with China could become increasingly strained flared up Thursday, with U.S. senators introducing a bipartisan bill that would sanction Chinese officials and organizations who enforce newly introduced security measures in Hong Kong. This came a day after the Senate passed a bill that would make it more difficult for Chinese companies to list on U.S. stock exchanges. All three major indices ended the regular session lower.

Overnight, Chinese officials at their National People’s Congress in Beijing declined to provide an annual gross domestic product target for the country’s economic growth for the first time since the practice began about three decades ago, underscoring the economic impact from the coronavirus pandemic. China’s quarterly GDP growth turned negative for the first time on record in the first three months of the year, declining 6.8%.

Earlier on Thursday, the U.S. Labor Department’s weekly report on initial jobless claims showed another 2.438 million individuals filed for unemployment insurance claims last week, bringing the nine-week total for new claims to more than 38 million. Continuing jobless claims hit a fresh record high of more than 25 million, as of the week ended May 8.

“The long fat tail in the profile of job losses during this pandemic suggests that layoffs are no longer just because of the economy shutting down and a backlog of claims being processed,” Torsten Slok, chief economist at Deutsche Bank Securities, said in a note.

“Instead, the fact that we still lost 2.4mn [million] jobs last week after nine weeks of COVID-19 suggests that what is going on is a more permanent reallocation of workers away from jobs in industries that require a high degree of face-to-face and close physical interaction,” he added.

Amid economic data that has remained historically weak, Federal Reserve officials have dimmed hopes of a speedy, V-shaped recovery – an outcome the stock market, up 32% from its March 23 low, has appeared more unwilling to bet against so far.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In commentary Thursday, New York Fed President John Williams&nbsp;said he forecasted a “a couple very difficult months ahead of us,” and Fed Vice Chairman Richard Clarida also said he believed the “net effect” of the pandemic would be “for aggregate demand to decline relative to aggregate supply, both in the near term and over the medium term.”” data-reactid=”23″>In commentary Thursday, New York Fed President John Williams said he forecasted a “a couple very difficult months ahead of us,” and Fed Vice Chairman Richard Clarida also said he believed the “net effect” of the pandemic would be “for aggregate demand to decline relative to aggregate supply, both in the near term and over the medium term.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="After market close, chip-maker Nvidia (NVDA) reported sales for the first quarter that grew 39% over last year and profit that beat expectations, and its guidance for the current quarter topped estimates. Ross Stores (ROST), on the other hand, reported quarterly sales that halved over last year and swung to a loss amid widespread store closures during the pandemic.” data-reactid=”24″>After market close, chip-maker Nvidia (NVDA) reported sales for the first quarter that grew 39% over last year and profit that beat expectations, and its guidance for the current quarter topped estimates. Ross Stores (ROST), on the other hand, reported quarterly sales that halved over last year and swung to a loss amid widespread store closures during the pandemic.

1:26 p.m. ET: Stocks pare declines, S&P 500 and Nasdaq turn positive

Here were the main moves in markets as of 1:27 p.m. ET:

  • S&P 500 (^GSPC): +0.27 points (+0.01%) to 2,948.78

  • Dow (^DJI): -67.88 points (-0.28%) to 24,406.24

  • Nasdaq (^IXIC): +27.29 points (+0.29%) to 9,312.31

  • Crude (CL=F): -$0.74 (-2.18%) to $33.18 a barrel

  • Gold (GC=F): +$12.80 (+0.74%) to $1,734.70 per ounce

  • 10-year Treasury (^TNX): -1.6 bps to yield 0.661%

12:40 p.m. ET: Fauci warns of ‘irreparable damage’ if US stays closed to long: CNBC

Dr. Anthony Fauci, the country’s top infectious disease expert, said in an interview with CNBC that he did not support protracted stay-in-place orders, noting that these could inflict “irreparable damage” to the U.S. economy.

“I don’t want people to think that any of us feel that staying locked down for a prolonged period of time is the way to go,” he said, according to the CNBC interview.

Instead, he advocated a phased reopening to get back to “some degree of normal,” while also cautioning that easing social distancing too quickly could bring on another jump in COVID-19 cases.

9:36 a.m. ET: Stocks open lower

Here were the main moves in markets as of 9:36 a.m. ET:

  • S&P 500 (^GSPC): -6.18 points (-0.21%) to 2,942.33

  • Dow (^DJI): -92.85 points (-0.38%) to 24,381.27

  • Nasdaq (^IXIC): -26.15 points (-0.28%) to 9,258.65

  • Crude (CL=F): -$0.99 (-2.92%) to $32.93 a barrel

  • Gold (GC=F): +$12.10 (+0.7%) to $1,734.00 per ounce

  • 10-year Treasury (^TNX): -1.1 bps to yield 0.666%

8:30 a.m. ET: Alibaba revenue growth slows amid pandemic

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Chinese e-commerce giant Alibaba (BABA) reported a revenue deceleration in the first three months of the year amid the coronavirus pandemic, with sales growing 22% from a 51% pace of increase in the same quarter last year. Annual active customers on its Chinese retail marketplaces grew 11% to 726 million.” data-reactid=”52″>Chinese e-commerce giant Alibaba (BABA) reported a revenue deceleration in the first three months of the year amid the coronavirus pandemic, with sales growing 22% from a 51% pace of increase in the same quarter last year. Annual active customers on its Chinese retail marketplaces grew 11% to 726 million.

“Although the pandemic negatively impacted most of our domestic core commerce businesses starting in late January, we have seen a steady recovery since March,” CFO Maggie Wu said in a statement.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="During an earnings call Friday morning, Wu said Alibaba will “closely monitor” the developments of the Holding Foreign Companies Accountable Act passed by the U.S. Senate earlier this week, which moves to delist foreign issuers listed on U.S. exchanges that are found not to comply with U.S. accounting principles.” data-reactid=”58″>During an earnings call Friday morning, Wu said Alibaba will “closely monitor” the developments of the Holding Foreign Companies Accountable Act passed by the U.S. Senate earlier this week, which moves to delist foreign issuers listed on U.S. exchanges that are found not to comply with U.S. accounting principles.

Wu said Alibaba holds itself to a “high standard of transparency” and that Alibaba’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

7:15 a.m. ET Friday: Stock futures lower heading into Friday’s regular session

Here were the main moves in markets as of 7:15 a.m. ET:

  • S&P 500 futures (ES=F): 2,927.5, down 9.5 points (-0.32%)

  • Dow futures (YM=F): 24,290.00, down 86 points (-0.35%)

  • Nasdaq futures (NQ=F): 9,314.75, down 41 points (-0.44%)

  • Crude (CL=F): -$2.00 (+5.90%) to $31.92 a barrel

  • Gold (GC=F): +$14.00 (+0.81%) to $1,735.90 per ounce

  • 10-year Treasury (^TNX): -2.8 bps to yield 0.649%

6:04 p.m. ET Thursday: Stock futures open slightly lower

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:03 p.m. ET:

  • S&P 500 futures (ES=F): 2,935.5, down 1.5 points (-0.05%)

  • Dow futures (YM=F): 24,369, down 7 points (-0.03%)

  • Nasdaq futures (NQ=F): 9,356.00, flat

NEW YORK, NEW YORK - MAY 21: A Fresh Direct worker in protective face mask and gloves handles deliveries on May 21, 2020 in New York City. COVID-19 has spread to most countries around the world, claiming over 332,000 lives with infections of over 5.1 million people. (Photo by Rob Kim/Getty Images)
NEW YORK, NEW YORK – MAY 21: A Fresh Direct worker in protective face mask and gloves handles deliveries on May 21, 2020 in New York City. COVID-19 has spread to most countries around the world, claiming over 332,000 lives with infections of over 5.1 million people. (Photo by Rob Kim/Getty Images)

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For tutorials and information on investing and trading stocks, check out Cashay” data-reactid=”91″>For tutorials and information on investing and trading stocks, check out Cashay

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OPEC, allied nations extend nearly 10M barrel cut by a month – World News – Castanet.net

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OPEC and allied nations agreed Saturday to extend a production cut of nearly 10 million barrels of oil a day through the end of July, hoping to encourage stability in energy markets hard hit by the coronavirus-induced global economic crisis.

Ministers of the cartel and outside nations led by Russia met via video conference to adopt the measure, aimed at cutting the excess production depressing prices as global aviation remains largely grounded due to the pandemic. The curbed output represents some 10% of the world’s overall supply.

But danger still lurks for the market, even as a number of nations ease virus-related lockdowns, and enforcing compliance remains thorny.

Algerian Oil Minister Mohamed Arkab, the current OPEC president, warned meeting attendees that the global oil inventory would soar to 1.5 billion barrels by the mid-point of this year.

“Despite the progress to date, we cannot afford to rest on our laurels,” Arkab said. “The challenges we face remain daunting.”

That was a message echoed by Saudi Oil Minister Abdulaziz bin Salman, who acknowledged “we all have made sacrifices to make it where we are today.” He said he remained shocked by the day in April when U.S. oil futures plunged below zero.

“There are encouraging signs we are over the worst,” he said.

Russian Energy Minister Alexander Novak similarly called April “the worst month in history” for the global oil market.

The decision came in a unanimous vote, Energy Minister Suhail al-Mazrouei of the United Arab Emirates wrote on Twitter. He called it “a courageous decision.”

But it is only a one-month extension of a production cut that was deep enough “to keep prices from going so low that it creates global financial risk but not enough to make prices very high, which would be a burden to consumers in a recessionary time,” said Amy Myers Jaffe, senior fellow at the Council for Foreign Relations.

“There is so much uncertainty that I think they took a conservative approach,” she said. “You don’t know how much production is going to come back on. You don’t know what’s going to happen with demand. You don’t know if there’s going to be a second (pandemic) wave.”

Jaffe said improved oil demand in China and Asia and a gradual stabilization of demand in the United States and to some extent Europe, where there’s some cautious economic reopening, were encouraging for producers.

OPEC has 13 member states and is largely dominated by oil-rich Saudi Arabia. The additional countries involved part in the so-called OPEC Plus accord have been led by Russia, with Mexico under President Andrés Manuel López Obrador playing a considerable role at the last minute in the initial agreement.

Crude oil prices have been gaining in recent days, in part on hopes OPEC would continue the cut. International benchmark Brent crude traded Saturday at over $42 a barrel. Brent had crashed below $20 a barrel in April.

Earlier this year, when demand was down, Saudi Arabia was flooding the market with crude oil, helping to send prices down to record lows. That prompted the U.S. government in April to take the unusual step of getting involved in OPEC’s negotiations, pressuring members of the cartel to agree to cuts to help end the oil price free-fall.

At the time, President Donald Trump said the U.S. would help take on some of the cuts that Mexico was unwilling to make. And perhaps more importantly, a group of U.S. senators upset over the impact on U.S. shale production said at the time that they had drafted legislation which would remove American forces, including Patriot Missile batteries, from Saudi Arabia.

Under a deal reached in April, OPEC and allied countries were to cut nearly 10 million barrels per day until July, then 8 million barrels per day through the end of the year, and 6 million a day for 16 months beginning in 2021.

In a rambling Rose Garden speech on Friday, Trump took credit for the April deal. “People said that wasn’t possible but we got Saudi Arabia, Russia and others to cut back substantially,” he said. “We appreciate that very much.”

U.S. Energy Secretary Dan Brouillette tweeted his applause Saturday for the extension, which he said comes “at a pivotal time as oil demand continues to recover and economies reopen around the world.”

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HSBC warns it could face reprisals in China if UK bans Huawei equipment: Telegraph – Investing.com

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© Reuters. HSBC’s building in Canary Wharf is seen behind a City of London sign outside Billingsgate Market in London

(Reuters) – HSBC Holdings Plc (L:) Chairman Mark Tucker has warned Britain against a ban on networking equipment made by Huawei Technologies Co Ltd, claiming the bank could face reprisals in China, the Telegraph reported on Saturday.

Tucker made the claim in private representations to British Prime Minster Boris Johnson’s advisers, the newspaper reported https://www.telegraph.co.uk/business/2020/06/06/hsbc-warns-downing-street-chinese-reprisals-huawei, citing industry and political sources.

Britain designated Huawei a “high-risk vendor” in January, capping its 5G involvement at 35% and excluding it from the data-heavy core of the network. It is looking at the possibility of phasing Huawei out of its 5G network completely by 2023, according to officials.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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HSBC warns it could face reprisals in China if UK bans Huawei equipment: Telegraph – Reuters

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FILE PHOTO: HSBC’s building in Canary Wharf is seen behind a City of London sign outside Billingsgate Market in London, Britain, August 8, 2018. REUTERS/Hannah McKay

(Reuters) – HSBC Holdings Plc (HSBA.L) Chairman Mark Tucker has warned Britain against a ban on networking equipment made by Huawei Technologies Co Ltd, claiming the bank could face reprisals in China, the Telegraph reported on Saturday.

Tucker made the claim in private representations to British Prime Minster Boris Johnson’s advisers, the newspaper reported here citing industry and political sources.

Britain designated Huawei a “high-risk vendor” in January, capping its 5G involvement at 35% and excluding it from the data-heavy core of the network. It is looking at the possibility of phasing Huawei out of its 5G network completely by 2023, according to officials.

Reporting by Ismail Shakil in Bengaluru; Editing by Dan Grebler

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